RESOURCEFUL AUTOMOBILE LTD According to the New Delhi-based company's offering document, it is looking to raise 120 million rupees ($1.4 million), which it will use to repay debt and open new showrooms. Sahni AutomobilesThe company is an authorized dealer Yamaha Motor CompanyCalls to the firm for comment were not answered.
Helped by tremendous demand from a growing retail market, shares of companies going public in India this year have risen by more than 50% on average since their debut, twice the global average. The frenzy continues despite efforts by regulators to warn investors about the risks and curb excessive measures.
“Many investors are investing in IPOs with the sole intention of making a quick buck,” said Vineet Arora, who manages Singapore-based NAV Capital Emerging Star Fund. Arora, who also invests in smaller firms participating in IPOs, said some investors continue to ignore risk and hope to make a profit by selling shares soon after trading begins.
Despite the scooter maker's strong start Ola Electric Mobility Limited and planned local listings Hyundai Motor Company’s Indian unit has attracted attention, but most offerings have been much smaller. About two-thirds of the more than 200 companies listed on Indian stock markets this year have raised less than $10 million.